FDRUS 9903: Food Producers' Competitiveness in Kuzbass

Project Title

Location

Duration

Russian Fed.

2001-2003

An urgent need in Kuzbass is to increase the competitiveness of local small and medium scale private food producers by eliminating bottlenecks between the production, processing, storage, transport, and the various marketing stages of selected local food products. The focus of the project is therefore on the development of commercial and operating links between independently operated levels of the food chain. Taking into consideration the need to improve local food related business management in order to sell more local foodstuffs at better prices, the project specific objectives are:

(i) to stimulate and revitalise competitiveness of Kuzbass' food sector, in particular the meat and milk sectors;

(ii) to restore consumer confidence in food of domestic origin by the adoption of Good Agricultural Practices;

(iii) to improve agricultural sector productivity by giving proper attention and adaptation to both natural comparative advantage and current market forces.

To do this, the project has selected several farmers groups which are organised in several forms of Small and Medium scale enterprises (cooperatives, associations) as well as local development associations and is targeting the development of trade links with local food producers.

Based on two pilot demonstration chains to be developed in the meat and milk sectors, where private operators of every level are involved, the project is providing TA in order:

- to provide TA and support to local private initiatives in agriculture so as to promote effective market structures in the local food production chain;

- to assist the Kuzbass government to prepare a set of guidelines, good policies and incentives enabling viable enterprises to become profitable through satisfying market demand;

- to set-up small scale credit units (unions) for the benefit of local traders within the project area;

- to support small, privately owned, agri-business consulting firms (ACF) to become financially viable through providing services in demand from enterprises managers;

- to assist the adoption of Good Agricultural Practices and best business practices to make Kuzbass food competitive (through appropriate management in a spirit of problem solving, commercial trust will be generated in the food business by improving quality, packaging, presentation and diversification of the local product range).

The project also includes development of a local Market information System (MIS) and is collaborating with an existing “business incubator” in order to extend support to farmers groups. At a later stage, based on the demonstrated results, the project will provide advice and proposals on regional development policy adaptation.

Donor Agency	Recipient	Beneficiaries	Project TA Value
EU-Tacis	Kemerovo Oblast Administration	Kemerovo Oblast Administration	mEuro 1.4